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PELICAN RESOURCES LIMITED (ABN 12 063 388 821)
INTERIM FINANCIAL STATEMENTS 31 DECEMBER 2011
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
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CONTENTS Page * Review of operations 2 * Directors' report 6 * Consolidated statement of comprehensive income 7 * Consolidated statement of financial position 8 * Consolidated statement of changes in equity 9 * Consolidated statement of cash flows 10 * Notes to the financial statements 11 * Directors’ declaration 17 * Independent auditor’s review report 18 * Auditor’s independence declaration 20
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
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REVIEW OF OPERATIONS REPUBLIC OF THE PHILIPPINES ROMBLON PROJECT, SIBUYAN ISLAND, ROMBLON PROVINCE (MPSA No. 3042009-IVB, SSMP ROM 167 & 168) Interest: MPSA 3042009-IVB SSMP ROM 167 and 168 The granted Mineral Production Sharing Agreement (MPSA) on Sibuyan Island in the Romblon Province in the Philippines is being evaluated as a source of direct shipping lateritic nickel ore (DSO). The project is still in the process of being transferred from Altai Resources Philippines Inc. (Altai), the original applicant of the MPSA, to Sibuyan Nickel Properties Development Corporation (SNPDC). SNPDC is owned by Pelican Resources Limited in conjunction with its Joint Venture partner All-Acacia Resources Inc. Field work commenced in the September quarter with drilling crews and equipment mobilised at the beginning of September. The aim was to commence a diamond drilling programme, using local labour to upgrade, and extend the known resource to JORC compliant measured and indicated reserve standards. However, as reported to the ASX on 22 September 2001, Altai was served with a Cease and Desist Order (CDO) by the Region IV Mines and Geoscience Bureau based on a complaint from the local Mayor. SNPDC’s lawyers have responded within the 15 day period as requested in the temporary order. The response included advice that all matters raised by the mayor have already been addressed as part of the approval process prior to the issue of the MPSA. The Cease and Desist Order (CDO) issued by the Mines and Geosciences Bureau (MGB) of the Department of Environment and Natural Resources (DENR) still remains in force.The drilling crews and equipment mobilised to site and ready to commence drilling in September, was de-mobilised in December and field related work held in abeyance pending the resolution of the Cease and Desist Order (CDO). The CDO issued in September against Altai Philippines Mining Corporation (Altai) or anyone acting on its behalf, to desist from conducting mining activities within the area covered by the MPSA. Sibuyan Nickel Properties Development Corporation (Sibuyan), as attorney-in-fact of Altai, filed its comment on the CDO and through its Lawyers filed a supplemental response to the comment and also wrote a letter to the Secretary of the DENR asking for the lifting of the CDO.
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REVIEW OF OPERATIONS (continued) In November, the MGB inspection team visited the Sibuyan Island to document and verify the veracity or truthfulness to the issues and complaints. To date, both the MGB and DENR have yet to issue any resolution in reply to the demand for the immediate lifting of the Cease and Desist Order against Altai. These matters, which have been initiated by Local Government Officials, are being attended to by our Legal Counsel in the Philippines.
WESTERN AUSTRALIA KIMBERLEYS COCKATOO ISLAND PROJECT (M04/235) Interest: 100% Operator: HWE Cockatoo Pty Ltd Cliffs Asia Pacific Iron Ore Pty Ltd, as representative for the Cockatoo Island Project, has notified the Company that 961,850 tonnes of iron ore were shipped from Cockatoo Island during the six month period ended 31 December 2011. Royalty payments are at the rate of 50 cents per dry metric tonne of iron ore shipped.
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REVIEW OF OPERATIONS (continued) PILBARA DONALD WELL (E45/2534) Interest: 100% Operator: Sunrise Exploration Pty Ltd The Donald Well tenement is located approximately 45 kms to the southeast of Port Hedland. The central portion of the tenement is occupied by the northeast trending Tabba Tabba Shear Zone which consists of deformed, ultramafic and mafic rocks together with banded iron formation and chert, between two granitic plutons. Two of three VTEM geophysical anomalies, previously identified, were drill tested during the period. The RC Percussion drilling programme comprised two inclined drill holes of 138 and 126 metres each for a total advance of 264 metres. The massive sulphide intersections of 11 and 7 metres in DWRC 1 and 6 metres in DWRC 2 respectively, are considered to account for the conductors detected by the geophysical survey. The massive sulphides are composed of pyrite and pyrrhotite and only elevated levels of zinc and nickel were detected in the drill samples. The drill data and anomalous assay results are tabulated below: Hole WGS 84 WGS 84 Total From To Intersection Zinc Nickel Easting Northing Depth (m) (m) (m) ppm ppm DWRC 1 708205 7723721 138 104 115 11 197 243 131 137 7 85 1,883 DWRC 2 706531 7720952 126 34 37 3 67 1,487 43 46 3 1,054 236 massive sulphide zone 97 103 6 321 280 106 109 3 65 1,299 NOTE: Both RC Percussion holes drilled at inclination -60 degrees & azumith 270 degrees magnetic.
CAPITAL RAISING The Company announced on 20 January 2012 that it was undertaking a capital raising via an Entitlement Issue to all eligible shareholders on the basis of 1 new share for every 3 shares held at the record date, at a price of $0.02 per share together with a one for one free attaching option exercisable at $0.04 on or before 30 June 2014.
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REVIEW OF OPERATIONS (continued) The Issue is fully underwritten by CPS Securities Pty Ltd which has been appointed as Lead Manager and Underwriter. Competent Person’s Statement The information in this Report that relates to Mineral Resources is based on, and accurately reflects, the information compiled by Dr John Hills a consultant to Pelican Resources Limited. Dr Hills is a member of the Australasian Institute of Mining and Metallurgy, respectively. Dr Hills has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activities which they are undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Hills consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.
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DIRECTORS’ REPORT
The directors present their financial report on the consolidated entity consisting of Pelican Resources Limited and its controlled entities for the half-year ended 31 December 2011.
DIRECTORS
The following persons were directors of Pelican Resources Limited during the half-year and up to the date of this consolidated financial report. Directors were in office for the entire period unless otherwise stated.
John Palermo John Henry Hills Mike Bue Douglas Burkett Green (resigned: 29/11/2011)
REVIEW OF OPERATIONS
Refer to the summary of Review of Operations for a review of operational matters.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the Auditor’s Independence Declaration as required under Section 307C of the Corporations Act 2001 is set out on page 20.
This consolidated financial report is signed in accordance with a resolution of the board of directors.
______________ John Palermo Director
Dated at Perth this 15th day of March, 2012
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2011
Note December 2011 $
December 2010 $
Revenue 459,162 333,341 Gain on disposal of subsidiary 12 48,370 -- Net foreign exchange gains/(losses) 127,940 (450,327)
Administration expense (70,407) (78,963) Auditor’s remuneration (17,655) (7,024) Borrowing costs (27,000) (59,868) Company secretarial expenses (16,350) (16,350) Consulting fees (116,082) (209,061) Depreciation (5,204) (1,404) (Decrease)/increase in value of loans and investments (465) 3,100 Directors’ and CEO benefits expenses (87,637) (20,941) Exploration expenditure written off (275,573) (8,079) Insurance (12,651) (8,844) Rent and outgoings (8,917) (7,917) Travel and accommodation (3,098) (14,399) Other expenses (68,300) (73,558)
Loss before income tax 3 (73,867) (620,294)
Income tax -- --
Loss for the period (73,867) (620,294)
Other comprehensive income Currency translation differences (45,992) 15,591 Changes in fair value of securities (35,344) 3,401
Other comprehensive loss for the period (81,336) 18,992
Total comprehensive loss for the period (155,203) (601,302)
(Loss)/gain attributable to: Members of the parent entity (106,946) (625,614) Non-controlling interest 33,079 5,320
(73,867) (620,294)
Total comprehensive (loss)/gain attributable to: Members of the parent entity (184,158) (608,879) Non-controlling interest 28,955 7,577
(155,203) (601,302)
Basic and diluted losses per share (cents per share) 4 (0.06) (0.41)
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2011
Note December 2011 $
June 2011 $
CURRENT ASSETS Cash and cash equivalents 5 970,195 1,133,489 Trade and other receivables 238,703 200,273 Other current assets 155,658 198,642
Total Current Assets 1,364,556 1,532,404
NON CURRENT ASSETS Trade and other receivables -- 5,204 Other financial assets 10,020 45,829 Plant and equipment 62,878 26,267 Mineral exploration and evaluation expenditure 5,558,945 5,378,421
Total Non Current Assets 5,631,843 5,455,721
TOTAL ASSETS 6,996,399 6,988,125
CURRENT LIABILITIES Trade and other payables 278,872 151,409 Interest bearing liabilities 6 450,000 450,000
Total Current Liabilities 728,872 601,409
NON CURRENT LIABILITIES Non interest bearing liabilities 918,733 882,719
Total Non Current Liabilities 918,733 882,719
TOTAL LIABILITIES 1,647,605 1,484,128
NET ASSETS 5,348,794 5,503,997
EQUITY Issued capital 7 12,320,896 12,320,896 Reserves 8 1,213,185 1,290,397 Accumulated losses (8,266,083) (8,159,137)
Total parent entity interest 5,267,998 5,452,156 Non-controlling interest 80,796 51,841
TOTAL EQUITY 5,348,794 5,503,997
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2011
Issued Capital
$
Share Options Reserve
$
Foreign Currency
Translation Reserve
$
Asset Revaluation
Reserve $
Accumulated Losses
$
Non- Controlling
Interest $
Total Equity
$
Balance at 01/07/2010 9,128,394 1,303,274 (84,008) (26,478) (7,160,381) 46,173 3,206,974 Total comprehensive income for the period
(Loss)/profit for the period -- -- -- -- (625,614) 5,320 (620,294) Other comprehensive income Foreign currency translation differences
--
--
13,334
--
--
2,257
15,591
Net changes in fair value of securities
--
--
--
3,401
--
--
3,401
Total other comprehensive income for the period
--
--
13,334
3,401
--
2,257
18,992
Total comprehensive income for the period
--
--
13,334
3,401
(625,614)
7,577
(601,302)
Transactions with owners recorded directly into equity
Contributions by and distributions to owners
Shares issued during the period 3,487,500 -- -- -- -- -- 3,487,500 Options issued during the period -- 82,451 -- -- -- -- 82,451 Transactions costs (291,851) -- -- -- -- -- (291,851) Total contributions by / distributions to owners
3,195,649
82,451
--
--
--
--
3,278,100
Balance at 31/12/2010 12,324,043 1,385,725 (70,674) (23,077) (7,785,995) 53,750 5,883,772
Balance at 01/07/2011 12,320,896 1,385,725 (71,026) (24,302) (8,159,137) 51,841 5,503,997 Total comprehensive income for the period
(Loss)/profit for the period -- -- -- -- (106,946) 33,079 (73,867) Other comprehensive income Foreign currency translation differences
--
--
(41,868)
--
--
(4,124)
(45,992)
Net changes in fair value of securities
--
--
--
(35,344)
--
--
(35,344)
Total other comprehensive income for the period
--
--
(41,868)
(35,344)
--
(4,124)
(81,336)
Total comprehensive income for the period
--
--
(41,868)
(35,344)
(106,946)
28,955
(155,203)
Transactions with owners recorded directly into equity
Contributions by and distributions to owners
Shares issued during the period -- -- -- -- -- -- -- Options issued during the period -- -- -- -- -- -- -- Transactions costs -- -- -- -- -- -- -- Total contributions by / distributions to owners
--
--
--
--
--
--
--
Balance at 31/12/2011 12,320,896 1,385,725 (112,894) (59,646) (8,266,083) 80,796 5,348,794
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
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CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011
Note December 2011 $
December 2010 $
Cash Flows from Operating Activities Payments to suppliers and employees (354,078) (525,449) Interest received 93,142 20,681 Interest paid (31,500) (91,134) Royalties received 415,737 176,219 Other -- 21,427
Net Cash Provided By/(Used In) Operating Activities
123,301
(398,256)
Cash Flows from Investing Activities Payments for exploration expenditure (176,519) (1,834,741) Loans from/(to) other entities (9,863) 173,803 Payments for plant and equipment (41,862) (3,095)
Net Cash (Used In) Investing Activities (228,244) (1,664,033) Cash Flows from Financing Activities Proceeds from issue of shares and options -- 3,000,000 Costs associated with share and option issues -- (209,400) Repayment of borrowings -- (122,500) Advances to subsidiaries from outside shareholders -- 145,187
Net Cash Provided By Financing Activities -- 2,813,287 Net (decrease)/increase in cash and cash equivalents held
(104,943)
750,998
Cash and cash equivalents at beginning of the financial period
1,133,489
1,056,703
Effect of exchange rate changes on cash holdings (58,351) (183,306)
Cash and cash equivalents at the end of the half-year 5 970,195 1,624,395
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011
NOTE 1: BASIS OF PREPARATION
The half-year consolidated financial report is a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 and Accounting Standard AASB 134: Interim Financial Reporting. Compliance with AASB 134 ensures that the financial report and notes also comply with International Financial Reporting Standards IAS 34: Interim Financial Reporting.
It is recommended that this consolidated financial report be read in conjunction with the annual financial report for the year ended 30 June 2011 and any public announcements made by Pelican Resources Limited and its controlled entities during the half-year in accordance with the continuous disclosure requirements arising under the Corporations Act 2001.
The half-year consolidated financial report does not include full disclosures of the type normally included in annual financial reports.
The half-year consolidated financial report has been prepared on an accruals basis and is based on historical costs, except for certain financial assets which are carried at fair value.
The accounting policies have been consistently applied by the consolidated entity and are consistent with those in the June 2011 annual financial report, except in relation to the matters disclosed below: New and Revised Accounting Standards and Interpretations In the current year, the consolidated entity has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for the current annual reporting period. The adoption of these new and revised Standards and Interpretations has not resulted in a significant or material change to the consolidated entity’s accounting policies. NOTE 2: DIVIDENDS
There have been no dividends declared or recommended and no distributions made to shareholders or other persons during the period.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011 (continued)
NOTE 3: LOSS BEFORE INCOME TAX
Loss before income tax includes the following revenues, expenses and gains whose disclosure is relevant in explaining the financial performance for the interim period:
Consolidated Note December 2011
$December 2010
$ Revenues Interest income 35,127 41,928 Royalties 424,035 269,986 Option fee -- 21,427
Gains/(losses) Gain on disposal of subsidiary 12 48,370 -- Net foreign exchange gains/(losses) 127,940 (450,327)
Expenses Administration fees 70,407 78,963 Auditor’s remuneration 17,655 7,024 Borrowing costs 27,000 59,868 Company secretarial expenses 16,350 16,350 Consultancy fees 116,082 209,061 Depreciation 5,204 1,404 Decrease/(increase) in value of loans and investments 465 (3,100) Directors’ and CEO benefits expenses 87,637 20,941 Exploration expenditure written off 275,573 8,079 Insurance 12,651 8,844 Rent and outgoings 8,917 7,917 Travel and accommodation 3,098 14,399 Other expenses 68,301 73,558
NOTE 4: LOSS PER SHARE
The following reflects the income and data used in the calculations of basic and diluted loss per share: Consolidated December 2011
$ December 2010
$
Loss before income tax (73,867) (620,294) Adjustments: (Gain)/loss attributable to non-controlling interest (33,079) (5,320)
Loss used in calculating basic and diluted loss per share (106,946) (625,614)
Number of Number of Shares Shares
Weighted average number of ordinary shares used in calculating basic loss per share: 180,527,301 151,839,575
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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011 (continued)
NOTE 4: LOSS PER SHARE (continued) Diluted loss per share has not been disclosed as the conversion to ordinary shares does not lead to an inferior view of the earnings performance of the entity. NOTE 5: CASH AND CASH EQUIVALENTS
For the purpose of the half-year statement of cash flows, cash and cash equivalents are comprised of the following:
Consolidated December 2011
$ June 2011
$
Cash at bank 120,195 83,489 Term deposits 850,000 1,050,000
970,195 1,133,489
NOTE 6: INTEREST BEARING LIABILITIES Consolidated
Current December 2011
$ June 2011
$
Short-term loans 450,000 450,000
NOTE 7: ISSUED CAPITAL
Consolidated (a) Issued Capital
December 2011 $
June 2011 $
180,527,301Ordinary shares fully paid (30/06/2011: 180,527,301 ) 12,320,896 12,320,896
(b) Movements in ordinary share capital
Date Details No. of Shares
Issue Price
$
01/07/2011 Opening balance 180,527,301 -- 12,320,896 Less: transaction costs --
31/12/2011 Closing balance 180,527,301 12,320,896
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011 (continued)
NOTE 8: RESERVES
Consolidated (a) Composition
December 2011 $
June 2011 $
Options reserve 1,385,725 1,385,725 Foreign currency translation reserve (112,894) (71,026) Asset revaluation reserve (59,646) (24,302) 1,213,185 1,290,397
(b) Movements in options reserve
Date
Details
Performance Rights
No. of Listed Options
No. of Unlisted Options
Fair Value of Options
Issued
Exercise Price
Expiry Date
01/07/2011 Opening balance 500,000 -- 23,875,000 $1,385,725 -- -- 31/12/2011 Unlisted options expired -- -- (2,500,000) -- $0.10 31/12/2011 31/12/2011 Unlisted options expired -- -- (2,500,000) -- $0.25 31/12/2011 31/12/2011 Unlisted options expired -- -- (2,500,000) -- $0.35 31/12/2011 Less: transaction costs
arising on option issues
--
31/12/2011 Closing balance 500,000 -- 16,375,000 $1,385,725
(i) Performance Rights will convert to shares upon completion of the first shipment of ore
from Sibuyan Island under the Company’s Romblon Nickel Project. The valuation of the Performance Rights will be made using 26 November 2010 (AGM
Date) as the grant date. However, as there has not been a shipment to date and in view of the indefinite moratorium (purported) imposed by the local governor, the probability of this vesting condition being satisfied by the due date is considered to be remote. Therefore, the earlier valuation is discounted by 100%.
As and when the vesting condition of shipment is fulfilled, the said value shall be
expensed. The Board will evaluate the relevant conditions at the next balance date and revalue the discount rate at that time.
NOTE 9: CONTINGENT LIABILITIES
Pelican Resources Limited and its controlled entities have no known material contingent liabilities as at 31 December 2011.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011 (continued)
NOTE 10: EVENTS SUBSEQUENT TO REPORTING DATE Subsequent to the end of the half-year ended 31 December 2011, the following event had occurred:
On 8 March 2012, 60,175,767 fully paid ordinary shares at $0.02 each were issued along with 60,175,767 free attaching options plus 12,500,000 options in recognition of sub-underwriter fees, exercisable at $0.04 each on or before 30 June 2014 pursuant to the Prospectus lodged with the ASX on 25 January 2012.
NOTE 11: SEGMENT INFORMATION
Business Segments
The directors have considered the requirements of AASB 8 – Operating Segments and the internal reports that are reviewed by the chief operating decision maker (the Board) in allocating resources and have concluded that at this time there are no separate identifiable business segments.
The operations and assets of Pelican Resources Limited and its controlled entities are employed in exploration activities relating to minerals in Australia and the Philippines. NOTE 12: DISPOSAL OF SUBSIDIARY On 31 December 2011, the Group decided to divest itself of its interest in Sunlight Resources (Philippines) Inc. The subsidiary had an intercompany loan payable to its parent, Sunshine Gold Pty Ltd (a subsidiary of Pelican Resources Ltd), of $144,708 as at 31 December 2011. This loan which was fully provided for in prior periods in the books of Sunshine Gold is now written off and forgiven in the books of Sunlight Resources.
Loan Forgiven (Sunlight) $144,708
Loan from Sunshine Gold to Sunlight was forgiven by Sunshine and recognised as a gain in the books of Sunlight.
Gain/(loss) $(96,338) Considering the value of investment in the books of Sunshine, the share capital of Sunlight, translation and retained earning balances.
Gain on disposal of Sunlight $48,370
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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011 (continued)
NOTE 11: SEGMENT INFORMATION (continued)
Australia Philippines Eliminations Consolidated Dec 2011 Dec 2010 Dec 2011 Dec 2010 Dec 2011 Dec 2010 Dec 2011 Dec 2010 $ $ $ $ $ $ $ $
Geographical Segments
Revenue Sales to customers outside the Consolidated Entity 424,035 269,986 -- -- -- -- 424,035 269,986 Other revenues from customers outside the Consolidated Entity 35,079 62,741 48 614 -- -- 35,127 63,355
Total segment revenue 459,114 332,727 48 614 -- -- 459,162 333,341
Results Segment result (451,163) (2,472,675) 114,706 (39,024) 229,511 1,886,085 (106,946) (625,614)
Assets Segment assets 6,886,244 7,226,167 4,690,656 4,542,178 (4,580,501) (4,358,815) 6,996,399 7,409,530
Liabilities Segment liabilities 8,401,893 7,699,729 4,584,591 4,504,664 (11,338,879) (10,678,635) 1,647,605 1,525,758
PELICAN RESOURCES LIMITED AND CONTROLLED ENTITIES
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DIRECTORS’ DECLARATION In the opinion of the directors: a) The financial statements and notes are in accordance with the Corporations Act 2001,
including:
i) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2011 and of its performance for the half-year ended on that date; and
ii) complying with Australian Accounting Standard AASB 134: Interim Financial Reporting;
b) there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable. Signed in accordance with a resolution of the board of directors Dated this 15th day of March, 2012 ______________ John Palermo Director
18
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Liability limited by a scheme approved
under Professional Standards Legislation
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
INDEPENDENT AUDITOR’S REVIEW REPORT
TO THE MEMBERS OF
PELICAN RESOURCES LIMITED
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of Pelican Resources Limited, which comprises
the condensed consolidated statement of financial position as at 31 December 2011, the condensed
consolidated statement of comprehensive income, condensed consolidated statement of changes in equity,
and condensed consolidated statement of cash flows for the half-year ended on that date, notes comprising a
summary of significant accounting policies and other explanatory information, and the directors’ declaration
for Pelican Resources Limited (the consolidated entity). The consolidated entity comprises both Pelican
Resources Limited (the Company) and the entities it controlled during the half year.
Directors’ Responsibility for the Half-Year Financial Report
The directors of Pelican Resources Limited are responsible for the preparation of the half-year financial report
that gives a true and fair view in accordance with Australian Accounting Standards (including the Australian
Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the directors
determine is necessary to enable the preparation of the half-year financial report that is free from material
misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We
conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a
Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis
of the procedures described, we have become aware of any matter that makes us believe that the half year
financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of
the consolidated entity’s financial position as at 31 December 2011 and its performance for the half-year
ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the
Corporations Regulations 2001. As the auditor Pelican Resources Limited, ASRE 2410 requires that we comply
with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and
consequently does not enable us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit opinion.
Whilst we considered the effectiveness of management’s internal controls over financial reporting when
determining the nature and extent of our procedures, our review was not designed to provide assurance on
internal controls.
Our review did not involve an analysis of the prudence of business decisions made by the directors or
management.
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Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act
2001. We confirm that the independence declaration required by the Corporations Act 2001, has been
provided to the directors of Pelican Resources Limited on 15 March 2012.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe
that the half-year financial report of Pelican Resources Limited is not in accordance with the Corporations Act
2001 including:
(a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2011 and
of its performance for the half-year ended on that date; and
(b) complying with Accounting Standards AASB 134 Interim Financial Reporting and Corporations
Regulations 2001.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
John P Van Dieren
Director
West Perth, Western Australia
15 March 2012.
20
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Liability limited by a scheme approved
under Professional Standards Legislation
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
15 March 2012
Board of Directors
Pelican Resources Limited
Level 1, 284 Oxford Street
Leederville WA 6007
Dear Sirs
RE: PELICAN RESOURCES LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of Pelican Resources Limited.
As Audit Director for the review of the financial statements of Pelican Resources Limited for the period
ended 31 December 2011, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
(i) the auditor independence requirements of the Corporations Act 2001 in relation to the
review; and
(ii) any applicable code of professional conduct in relation to the review.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
John P Van Dieren
Director